Utilization Test

A formula that helps determine whether an organization’s actual representation rates are lower than would reasonably be expected (underutilization).  Companies use a number of methods to determine if underutilization exists, and any reasonable method, universally applied, is acceptable to the OFCCP.  For details on how each test is calculated, see Utilization Tests.

• Any Difference: underutilization is declared if there is any difference between the utilization percentage (actual representation) and the availability percentage (expected representation).
• Whole Person: underutilization is declared if the actual representation is at least one whole person lower than the number predicted by the expected representation.
• 80%: underutilization is declared only when the actual representation is less than 80% of the expected representation.
• Standard Deviation: underutilization is declared when the difference between actual and expected representation yields a standard deviation result of 1.96 or higher.
• Exact Binomial: underutilization is declared when the difference between actual and expected representation yields a standard deviation result of 1.96 or higher.
• 80% and Whole Person: underutilization is declared when the expected representation exceeds actual representation by at least one whole person *and* the actual representation is less than 80% of the expected representation.